Taiwan stocks continued to fall on Friday over Wall Street's steep drops overnight, hitting the lowest level in two years, according to media reports reaching Hong Kong on Friday from Taipei.

The benchmark weighted index opened 185.56 points, or 2.89 percent, lower at 6,227.07 and pared its losses to 105.35 points, or 1.64 percent, to close at 6,307.28 after trading between intra-day high 6,347.47 and intra-day low 6,211.35.

Turnover rose to 96.74 billion New Taiwan dollars (3.03 billion US dollars) from Thursday's 91.2 billion New Taiwan dollars (2. 87 billion US dollars).

Seven of the eight major stock categories were under huge selling pressure. Construction stocks plunged 5.1 percent. Cement issues fell 4.1 percent. Paper and pulp issues slumped 2.6 percent. Textile stocks declined 2.3 percent. Banking and financial shares went down 2.1 percent. Plastic and chemical shares fell 2 percent. Machinery and electronics shares dipped 0.9 percent.

Foodstuff issues outperformed the entire market by adding 0.9 percent.

Declining stocks outnumbered advancers 1,398 to 530, with 362 stocks unchanged.

(Xinhua News Agency September 5, 2008)